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Discussion Starter · #1 ·
When a studio creates a DVD from a film, is the additional cost to put the film on the HD-DVD format that much greater?


From what I understand, a film is scanned with a telecine machine that scans and converts the images to digital. I would think it would be just a matter of scanning the image at a higher bitrate when you wanted to put the film on HD-DVD, making the additional costs negligible.


I always hear rumors that the studios hate the format wars because of the high cost to put out a film in different formats, but I would think the additional costs would be small and easily made up with how much more high definition discs are priced. I would imagine that an HD-DVD disc only costs a few cents more per unit to manufacture versus a DVD.


Is it the distribution that is expensive, or the actual production of the disc?
 

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Quote:
I would think it would be just a matter of scanning the image at a higher bitrate when you wanted to put the film on HD-DVD, making the additional costs negligible.

No - you have to scan at a higher resolution and bit rate. Such equipment is significantly more expensice to purchase or sub contract out.

Quote:
would imagine that an HD-DVD disc only costs a few cents more per unit to manufacture versus a DVD.

Lets say the average print run for a HD movie is 30,000 copies at the moment vs 300,000 for a DVD.


Cost of HDDVD authoring over DVD is likely to be between $10,000 - $20,000 more (advanced menu system, high resolution film scanning, more complex encoding, advanced audio encoding and inclusion).


Cost of producing the actual discs estimate $0.40 difference between each type when quantity differences are taken into effect.


So total difference would be just short of $1.00 USD between HDDVD vs DVD.
 

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Discussion Starter · #3 ·
That's about the figure I was guessing at, around $1.00 more per disc. The $20,000 to transfer the film is negligible.


I would think the studios would be lining up to produce HD-DVD's. It cost $1.00 more to produce and you get to charge twice the price. I would say the average retail price of a DVD is $15.00 versus the average retail price of an HD-DVD is $30. I understand the quantity is far less, but that is still an enticing profit, especially for older films that no one is buying any longer.


It's also enticing because HD-DVD's are much more difficult to pirate and distribute as opposed to standard DVD.


Why is it that studios were so eager to release so many titles on laserdisc, which were significantly more expensive to transfer and produce as opposed to VHS, versus HD-DVD which seems so much more simple to produce alongside standard DVD?


Laserdisc had a small following, hardly anyone I knew owned a laserdisc player (except me), it probably was in less than 1% of households, yet it had thousands of releases.


It seems it's like pulling teeth to get studios to release HD-DVD's. I must be missing something here.
 

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It's simple. you assume (incorrectly) that the studios care about scraping up every ounce of profit. They don't. Their minds are on the $500m Spider Man 3 release, not the $500,000 profit from some HD release of some back catalog title.


A shiny new MBA would probably think... but... but... we can increase profits by 8% if we just chase the little things and tie up loose ends. However corporate inefficiencies eat that up just with the crushing overhead required to do something like say, put a disc in a box.


Further, as has been shown, the HD-DVD and BD markets combined are disappointingly small, and they are still concerned about piracy with the recent hackings of AACS. Plus, none of them have gotten out of the extras game, so it's $20k to remaster and then even more to produce and assemble more interactive BS the customers think they want. Add to that a supposed replication shortage for BD, and it just doesn't seem like the hot thing to do.


We may care if titles are released now or Q3 of 2008, but the studios don't.


A better question is why CD's cost what they do (and did). (A: Because people still bought them.) I can get a CD (pressed and delivered with case and artwork from Amazon) for 5 cents more than it costs to download the lossy tracks. Standard economics do not apply to the IP and media markets.
 

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Discussion Starter · #5 ·
I understand high definition discs not bringing the kind of money or excitement a blockbuster makes on opening weekend, but a healthy profit margin is still something worthwhile to pursue.


There is at least tens of millions of dollars to be made by several different studios with older catalog films that are now essentially generating zero revenue. I would think shareholders would be savvy enough to realize this.


I still don't get why studios were so eager to release so many laserdisc titles and have given the cold shoulder to high definition. I'm sure there aren't as many high definition players as there were laserdisc players, but those numbers can't be too far off.
 

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Quote:
Originally Posted by Frank_Eldorado /forum/post/0


I still don't get why studios were so eager to release so many laserdisc titles and have given the cold shoulder to high definition.

How many laserdisc titles were coming out from the majors studios per week only a year after launch? They had thousands after a while, but did it have a fast pace for releases even early on?


--Darin
 

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Quote:
Originally Posted by lgans316 /forum/post/0


The maximum cost to produce HD DVD according to me


For the Manufacturers ==> (Maximum Quoted Retail Selling Price - Actual Shop / Retailer Price) + Wastage Charges


For the Pirates ==> Rental Price + Cost of blank HD DVD + Wastage Charges

LMAO Wastage Charges for the Pirates, what would those be? "Ohh #%$& I bought too much Whiskey!"
 
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